Student Aid And Fiscal Responsibility Act Of 2009
Madam Chair, I rise in opposition to H.R. 3221, and yield myself such time as I may consume. Government takeover. We have seen and heard a lot of those two words lately--in the credit markets, the banking sector, the automotive industry,…
Madam Chair, I rise in opposition to H.R. 3221, and yield myself such time as I may consume.
Government takeover. We have seen and heard a lot of those two words lately--in the credit markets, the banking sector, the automotive industry, and even the building of schools. Then there's health care-- an industry that assumes one-sixth of America's gross domestic product. We're not talking about health care today, but perhaps we should be.
The vote we will take on student lending is a culmination of a plan set in motion more than a decade and a half ago--and one that bears an eerily strong resemblance to the health care debate that rages on today.
In 1993, Congress created a so-called government option for college loans. The idea of this Direct Loan Program was to introduce competition and hold down costs. Sound familiar? Just 16 years later, we're about to vote on a plan that would completely and permanently eliminate the private sector's role in originating and raising capital for Federal student loans. In its place will be a one-size-fits-all Federal loan model that requires the U.S. Treasury to directly lend tens of billions of dollars each year--tens of billions of dollars we don't have, and will be forced to borrow.
So why is Congress intervening to declare one program the winner? If it's truly about competition, the best program ought to win in the marketplace. In fact, one program has won--the public-private partnership of the Federal Family Education Loan Program, which is the choice of three-quarters of colleges and universities today.
By eliminating the FFEL program, we will lose the choice, the competition, and innovation of the private sector. That includes everything from technological innovations to loan discounts and borrower services. We will also lose jobs--an estimated 30,000 or more in congressional districts from coast to coast.
And what are we getting in return? My colleagues on the other side of the aisle tout this legislation as being fiscally responsible. Respectfully, I beg to differ.
The bill is awash with new entitlement programs, including a new early childhood program to develop and fund programs at the State level; a new program to build and renovate schools;
and a new program to bolster community colleges and involve the Federal Government in developing online curriculum.
Add to these new programs the cost of expanding Pell Grants, funding for Minority Serving Institutions and the Perkins Loan Program, and we have on our hands a massive entitlement spending spree. This spending is allegedly paid for by $87 billion in so-called savings from elimination of the FFEL program. Unfortunately, the numbers just don't add up.
CBO tells us the bill will require $13.5 billion in new discretionary spending--real money that simply isn't counted in the mandatory score. CBO also tells us that, using current figures, the Pell Grant expansion will cost $11.4 billion more than scorekeepers originally predicted-- again, a cost not counted for in the ``official'' score. That means this bill will cost closer to $15 billion over the next 10 years--and when market risk is factored in, the cost spikes to nearly $50 billion more.
Madam Chair, there's a better way. Later in the debate, I will join the ranking member on the Higher Education Subcommittee, Mr. Guthrie, in offering an amendment to stabilize student lending by extending programs approved on a bipartisan basis last year.
With this plan, we can put $13 billion towards deficit reduction and, most importantly, we can convene a nonpartisan commission to study long-term structural changes to our student lending systems. In short, it's a thoughtful, reasonable approach to determine what's best for students, schools, and taxpayers alike.
I urge my colleagues to slow down, take a breath, and ask yourself whether another government takeover is what we need right now. I think the answer is a clear ``no.''
I reserve the balance of my time.
At this time I'd like to yield 3 minutes to the ranking member on the Higher Education Subcommittee, the gentleman from Kentucky (Mr. Guthrie).
I yield the gentleman 1 additional minute.
Madam Chair, at this time I am pleased to yield 3 minutes to the distinguished gentleman from Indiana (Mr. Souder).
I yield the gentleman an additional 30 seconds.
Madam Chair, at this time I am very pleased to yield 3 minutes to the gentlelady from Illinois (Mrs. Biggert).
Madam Chair, could I inquire how much time is remaining, please?
Madam Chair, at this time, I yield 3 minutes to the distinguished gentleman from California (Mr. McClintock).
Madam Chair, at this time, I yield 2 minutes to the gentleman from Indiana (Mr. Burton).
(Mr. BURTON of Indiana asked and was given permission to revise and extend his remarks.)
I yield the gentleman an additional 30 seconds.
Madam Chair, at this time, I yield 2\1/2\ minutes to the gentleman from Wisconsin (Mr. Petri).
(Mr. PETRI asked and was given permission to revise and extend his remarks.)
Madam Chair, at this time, I yield 4 minutes to the distinguished ranking member on the Budget Committee, the gentleman from Wisconsin (Mr. Ryan).
Madam Chair, at this time, I am pleased to yield 2 minutes to the distinguished gentleman from Georgia, Dr. Price, a member of the committee.
I yield the gentleman an additional 30 seconds.
Madam Chair, may I inquire again as to the time remaining.
Madam Chair, at this time, I am pleased to yield 3 minutes to the gentleman from East Tennessee, Dr. Roe.
Madam Chair, I reserve the balance of my time.
Madam Chair, I will continue to reserve.
Madam Chair, can I inquire of the Chair the remaining time?
Madam Chair, I yield myself the remainder of my time.
It is clear, Madam Chair, that there is some dispute over what this does to the deficit. But I would argue that looking at the latest information from, as my friend from New Jersey says, the fair, nonpartisan arbiter of the facts, the Congressional Budget Office, this legislation will add to the deficit somewhere between $15 billion and $50 billion, subject to debate.
What is absolutely clear is that forcing the public option is a government takeover. It does grow a government with more new programs, and it does force job losses. I think that's indisputable.
Madam Chair, this is bad policy, it's a bad bill, and I urge a ``no'' vote.
Madam Chair, I yield back the balance of my time.
Madam Chair, I rise in opposition to the amendment.
Madam Chair, I have got to admit that this manager's amendment does make some helpful changes, and I appreciate that. However, it fails to address the fundamental flaws with the underlying bill, and for that reason I must oppose it.
I do appreciate Chairman Miller's willingness to incorporate some modest bipartisan changes. For example, Mr. Platts' amendment to assist the children of fallen public safety officers.
And despite these improvements, the bill still imposes a heavy cost on Americans today and in the future. It will cost students and schools the benefits of choice, competition and innovation. It will cost our workforce tens of thousands of jobs, including over 600 jobs in my home State of Minnesota and over 1,000 jobs in Chairman Miller's home State of California.
It could cost taxpayers billions of dollars and increased deficit spending.
So, despite the important improvements that the manager's amendment makes, I am still unable to support this amendment.
Madam Chair, I reserve the balance of my time.
Madam Chair, at this time, I yield such time as he may consume to the ranking member on the Higher Education Subcommittee, the gentleman from Kentucky (Mr. Guthrie).
Madam Chair, I reserve the balance of my time.
I continue to reserve the balance of my time.
I continue to reserve the balance of my time.
Madam Chair, I want to thank Chairman Miller for the improvements that his manager's amendment has made to the bill.
As I stated earlier, the fundamental flaws with this legislation still remain, even though there are parts, which as he correctly stated, that some members of the community certainly support, some members of the business community. Many of us support, for example, Mr. Platts' amendment to assist the children of fallen public safety officers, and I'm glad those are included in the manager's amendment. But it doesn't change the fact that the underlying bill is still flawed public policy.
We have heard again and again from speakers tonight that this is going to put money back into the Treasury and reduce the deficit, and yet we have provided information from the Congressional Budget Office that shows that's not the case. This is going to increase the deficit; it's going to increase the debt.
I was staggered the other day, Madam Chair, to look and see that we are now projecting, with the latest numbers from the White House, that within the next 10 years, the national debt will have grown to $21 trillion. And this bill, the underlying bill, adds new programs, programs that will be chronically underfunded, will nevertheless compete for money, will grow that deficit spending. So while I appreciate the improvements that the manager's amendment has made, I still must oppose this.
Madam Chair, I yield back the balance of my time.
Mr. Chairman, I claim time in opposition to the amendment, although I don't oppose the amendment.
Thank you, Mr. Chairman. I just wanted to take a moment, reflecting on the debate that we just had with Mr. Hoekstra's amendment, because it strikes to the underlying bill. And that's the problem here: Not this amendment--the underlying bill.
The chairman of the committee, the distinguished chairman, pointed out that there was a broken promise. And I'm sad to say it was entirely predictable that President Bush would be blamed for breaking a promise. But I would point out that we have had Presidents going back for years and Congresses going back for years and this Congress today that is failing to live up to a promise made many years ago, and that's to provide its share, its full funding of special education under IDEA.
And so whether we're talking about green, high-performing schools as a new program or many of the new programs introduced in this legislation, it seems to me we ought to fulfill that promise first rather than starting new programs which will be chronically underfunded and will be competing for that essential funding under IDEA.
So, again, the problem here is not this amendment. I'm going to support this amendment. It's the underlying bill.
I yield back the balance of my time.
Mr. Chairman, I demand a recorded vote.